Page 44 - InterloopAnnualReport2021

Certain amendments to the Scheme had been approved a very low expectation of credit risk and very strong
by the shareholders of the company in its last Annual capacity for timely payments of financial commitments.
General Meeting held on October 15, 2020 with the This capacity is not significantly vulnerable to foreseeable
context of listed Companies regulations owing to its listing events.
on Pakistan Stock Exchange (PSX) during the year 2019.
The Scheme had originally been approved by the members ADEQUATE INTERNAL CONTROLS
in the general meeting held on December 31, 2015 and AND MONITORING
by SECP through its letter no. SMD/CIW/ESOS/01/2016
The Board of Directors is aware of its responsibility with
dated September 01, 2016.
respect to internal controls environment and accordingly
has established an efficient system of internal controls for
Apart from the requisite amendments made under
ensuring effective and efficient conduct of operations,
the approval of the SECP, there had been no further
safeguarding company assets, compliance with applicable
consequential changes made to the Scheme. The legislative
laws and regulations and reliable financial reporting. Such
changes made in the constitutional law as indexed below
systems are monitored effectively by the Management
may be taken as incorporated;
while the Board Audit Committee reviews the internal
control systems based on assessment of risks and reports
i. Companies Ordinance, 1984 has been repealed to the Board of Directors.
with Companies Act, 2017;
ii. Public Companies (Employees Stock Option Scheme) ADEQUATE INTERNAL FINANCIAL
Rules, 2001 have been repealed with Companies
CONTROLS
(Further Issue of Shares) Regulations, 2020.
The Board of Directors has established a system of sound
Owing to the recent amendments in the Scheme approved internal financial controls, for achieving effectiveness and
by the shareholders of the company & SECP respectively efficiency in its operations, reliable financial reporting
as stated supra, the B class of Shares (Non-Voting Ordinary and compliance with applicable laws and regulations.
Shares) have now been eliminated from the applicable The independent Internal Audit function of the company
Scheme by approving and proposing requisite alteration regularly monitors implementation of financial controls
of/amendment to the Memorandum & Articles of whereas the Audit Committee reviews the effectiveness of
Association (MOA-AOA) of the company. Accordingly, the the internal control framework and financial statements on
Scheme is now fully operative and applicable under the a continuous basis.
prescribed amendments.
INTERNAL AUDIT AND CONTROL
CREDIT RATING
The Board has set up an independent Internal Audit
The management believes in transparency and credibility Function headed by a qualified person reporting to the
of financial information. In this regard the company Audit Committee. The scope of internal auditing within the
approached VIS Credit Rating Company Limited (VIS), a company is clearly defined which broadly involves review
‘Full Service’ rating agency providing independent rating and evaluation of its internal control system.
services in Pakistan which in its Press Release of April
20, 2021 had assigned an initial entity rating of ‘A+/A-1’ PATTERN OF SHAREHOLDING
(Single A plus/Single A-One) to Interloop Limited (ILP).
Pattern of Shareholding as at June 30, 2021, which are
Outlook on the assigned ratings was ‘Stable’. Long term
required to be disclosed under the reporting framework, is
rating of ‘A+’ signified good credit quality with adequate
annexed to this report.
protection factors. Risk may vary slightly from time to
time because of economic conditions. Short Term Rating
COMMUNICATION
of ‘A-1’ indicated high certainty of timely payment, and
excellent liquidity factors supported by good fundamental The company focuses on the importance of the
protection factors. communication with all the stakeholders. The Annual,
Half-yearly and Quarterly Reports are distributed to
These ratings reflect Interloop’s sound financial position them within the time specified in the Companies Act,
resulting from a robust capital structure and denotes 2017. Company engaged the Shareholders & analyst

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